Energy policy leader urges moderate shift in approach

Energy policy leader urges moderate shift in approach

In a strategic move aimed at achieving a balance between expanding its own portfolio and selling projects, PNE Group has adjusted its approach to renewable energy project development. The company, currently active in five countries outside Europe, is considering reducing its international presence and potentially withdrawing from two markets, while closely monitoring others[1].

The new strategy focuses on a medium-term target of robust capacity growth and diversified project development, supporting PNE's goal of sustainable expansion and financial stability in the competitive renewable energy market[1]. By the end of 2027, PNE expects to have an own portfolio of wind parks with a total capacity of around 1.1 GW instead of the original 1.5 GW[1].

PNE aims to significantly improve the efficiency of its projects by streamlining interfaces between suppliers and planning, and by accelerating projects to reduce capital being tied up for less time[1]. The company is also planning portfolio clean-ups in Panama and Turkey[1].

Financially, these changes aim to secure sustained revenue growth through both the sale of developed projects and increasing own-generation assets that provide steady cash flow. The balanced approach reduces reliance on a single revenue stream and positions PNE well to capitalize on increasing demand for renewable infrastructure amid supportive regulatory environments in Germany and Europe[1].

The company's equity ratio has decreased from around 25% in 2022 to around 15% last year, but PNE has issued a bond of 65 million euros to improve its financing structure and fund growth[1]. The new CEO of PNE, Heiko Wuttke, stated that the federal government should not significantly change the framework conditions for renewable energies[1].

In Europe, PNE is generally satisfied with its business in Germany, France, Poland, Italy, and Spain, but progress in grid connections is crucial. Bottlenecks are delaying the implementation of projects, including in Romania[1]. The number of projects up for sale is roughly one-third in Germany and two-thirds on international markets, based on the number of projects, not the performance in megawatts[1].

The current forecast for the business year is still valid, with most projects expected to be implemented in the second half of the year[1]. The forecast for 2025 predicts an increase in Ebitda to 70 to 110 million euros, despite the low wind affecting income from existing facilities, which affects the entire industry[1].

By 2024, the nominal capacity of PNE's own operations is expected to increase by around 50 to 428.5 MW[1]. The company's strategy has been enhanced by its project development and permitting capabilities, its expansion into wind and solar energy, and its partnerships[1]. For instance, PNE has recently gained permits for three onshore wind farms in Germany, strengthening their development pipeline and operational base[1].

The company's management has been reorganized within a year, and PNE has been actively seeking to improve the efficiency of its projects[1]. The company is also planning to focus more on profitable growth, with the goal of reaching about 1.1 GW of installed capacity in its own operation by the end of 2027, more than doubling from today[1].

The adjustments to the company's strategy and medium-term targets are supported by all shareholders[1]. The interview for this article was conducted by Carsten Steevens[1].

References: [1] Steevens, C. (Interviewer). (n.d.). PNE Group's Strategic Adjustments: Balanced Growth and Financial Stability. Retrieved from [URL] [5] PNE Group. (n.d.). Press Release: PNE Group Strengthens Development Pipeline and Operational Base with New Approval for Three Onshore Wind Farms in Germany. Retrieved from [URL] [3] PNE Group. (n.d.). Press Release: PNE Group and EDF Power Solutions Jointly Construct Gebstedt Wind Farm. Retrieved from [URL]

1. PNE Group is altering its approach to renewable energy project development, focusing on a medium-term target of robust capacity growth and diversified project development, with the aim of sustaining financial stability in the competitive renewable energy market.
2. To achieve a balance between expanding its own portfolio and selling projects, PNE plans to significantly improve the efficiency of its projects, streamline interfaces between suppliers and planning, and accelerate projects, thereby reducing capital being tied up for less time.
3. Financially, these changes in strategy aim to secure sustained revenue growth through both the sale of developed projects and increasing own-generation assets that provide steady cash flow, thus reducing reliance on a single revenue stream and positioning PNE well to capitalize on increasing demand for renewable infrastructure.

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